The impact of COVID-19 is causing local, state, and national governments around the world to issue work and travel restrictions on a daily basis, which is impacting our ability to meet our high standa
The impact of COVID-19 is causing local, state, and national governments around the world to issue work and travel restrictions on a daily basis, which is impacting our ability to meet our high standards of service.
As a result, FedEx made the decision to suspend our money-back guarantee for all FedEx Express services untilfurther notice. Because FedEx is an essential transportation service provider, we will continue operating as government restrictions and regulations allow.
The key business trends that would change and affect logistics industry in the long term.
Multimodal logistic : It refers to the use of a combination of all modes of transportation, including road, sea, air, and rail, to ship goods. Reduces the dependency on one mode of shipping. Relying on a single mode of transportation can create serious disruptions if that mode fails. For example, the Suez Canal blockage by a container vessel caused serious delays and disruptions throughout the industry. More logistics service providers will be using a multichannel logistics model to mitigate this risk.
Collaborative logistics:As businesses expand into global operations and become more international, data sharing is becoming crucial for having more visibility across the value chain. In the cold chain logistics sector, companies are now moving towards a more collaborative approach rather than a contractual one by focusing on sharing data and key performance indicators (KPIs) to increase efficiency in the sector. Another example, is the freight logistics optimization works (FLOW) initiative which is a data-sharing platform introduced by the US to reduce port congestions, supply chain bottlenecks and streamline global logistics operations.
Green Logistics :Sustainability is another trend that will be prominent in the future. As international agreements put more pressure on governments and organizations, logistics companies will continue to make more effort toward decarbonizing their operations. As logistics managers plan to add electric trucks to their road transport fleet, they must consider the energy sources in the region the trucks will operate to get a true calculation of their carbon footprint.
For example, In FY15 FedEx entered into an eight-year agreement with Colorado-based Red Rock Biofuels to blend bio fuels from woodland waste generated through forest management. FedEx expected to make use of the first 6 million gallons of commercially viable biofuel in 2019.
